Global private capital investment firm The Carlyle Group and Singapore’s sovereign wealth fund, GIC announced today a strategic investment in green ammonia project development company Eneus Energy, aimed at supporting the company’s 14GW+ project pipeline development.
Hydrogen, and related materials like ammonia, are viewed as one of the key building blocks of the transition to a cleaner energy future, given their ability to act both as clean energy carriers and fuels, as well as CO2-neutral feedstocks for the production of green chemicals. Extracting hydrogen from other materials, however, often generates pollutants through the use of fossil-fueled energy, with ammonia production currently responsible for over 1.5% of global GHG emissions. Eneus’ projects produce green ammonia, through a process using water, air, and renewable energy.
Ang Eng Seng, Chief Investment Officer of Infrastructure at GIC, said:
“This is a strategic investment to position GIC early for the green hydrogen market which we believe will play a crucial role in the transition to clean energy. We believe that Eneus has the potential to be a key player in the green hydrogen ecosystem.”
Founded in 2013, Eneus is a project developer and technology integrator for green ammonia production projects, with a portfolio of sites under development in the US, and additional site opportunities identified in the UK, Europe, and other areas globally.
According to Eneus CEO Chris Bronsdon, the new investment will enable the company to continue the development its pipeline of projects globally, starting with the US and UK.
“The potential global market demand for green ammonia is huge as decarbonization strategies are being implemented to reduce the emission of greenhouse gases from fossil fuels.”
The investment follows the establishment by Carlyle earlier this year of a new energy transition-focused investment platform, centralizing the firm’s infrastructure and energy capabilities to capture emerging investment opportunities arising from global decarbonization efforts, operating within the company’s Global Infrastructure business.
Pooja Goyal, Chief Investment Officer of Carlyle’s Infrastructure Group, said:
“At Carlyle, we believe that if you want to decarbonize the global economy, you have to go to where the carbon is. Green ammonia represents a step-change for the energy transition with enormous decarbonization potential.”